Company Overview - Guess (NYSE:GES) is a prominent brand in the fashion industry, focusing on clothing and accessories within the Consumer Discretionary sector, currently ranked 12 in the Zacks Sector Rank based on earnings estimates and revisions [1] Stock Performance - The current stock price of Guess is $17.07, reflecting a slight increase of $0.01 or about 0.06%. The stock has experienced a low of $17.03 and a high of $17.08 today, with a yearly high of $17.43 and a low of $8.48, indicating volatility [3][5] - Guess has a market capitalization of approximately $890.2 million, calculated by multiplying the current stock price by the total number of outstanding shares. Today's trading volume is 163,250 shares, showing investor interest and activity [4][5] Analyst Ratings - UBS has updated its rating for Guess to Neutral, advising investors to hold the stock, while the Zacks Rank system assigns Guess a rank of 2 (Buy), suggesting an expectation for the company to outperform the market in the short term, over the next one to three months [2][5]

Group 1 - Guess (GES) is currently outperforming its peers in the Consumer Discretionary sector, with a year-to-date gain of approximately 21.3% compared to the sector average of 0.5% [4] - The Zacks Rank for Guess is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 3.4% increase in the consensus estimate for full-year earnings over the past quarter [3] - Within the Textile - Apparel industry, which has seen an average loss of 16.2% this year, Guess is performing significantly better [5] Group 2 - The Consumer Discretionary group includes 265 companies, with Guess ranked 12 in the Zacks Sector Rank [2] - Another notable performer in the Consumer Discretionary sector is Naspers Ltd. (NPSNY), which has gained 50.3% year-to-date, while its industry, Cable Television, has declined by 33.4% [4][6] - The Textile - Apparel industry, to which Guess belongs, is currently ranked 69 in the Zacks Industry Rank [5]

Core Viewpoint - Guess (GES) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - Rising earnings estimates for Guess suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [10]. Earnings Estimate Revisions for Guess - For the fiscal year ending January 2026, Guess is expected to earn $1.65 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 3.4% over the past three months [8].

Core Insights - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 1: Momentum Investing Strategy - Investing in bargain stocks that have recently shown price momentum can be a safer approach [2] - The Zacks Momentum Style Score is effective in identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 2: Case Study - Guess (GES) - Guess (GES) has shown a price increase of 0.1% over the past four weeks, indicating growing investor interest [3] - GES has gained 1.4% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.28, suggesting it moves 28% higher than the market in either direction [4] Group 3: Valuation and Earnings Estimates - GES has a Momentum Score of A, indicating a favorable time to invest based on momentum [5] - An upward trend in earnings estimate revisions has contributed to GES earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [6] - GES is trading at a Price-to-Sales ratio of 0.28, meaning investors pay 28 cents for each dollar of sales, indicating a reasonable valuation [6] Group 4: Additional Opportunities - GES is not the only stock that meets the 'Fast-Paced Momentum at a Bargain' criteria; there are several other stocks worth considering [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Insights - Guess?, Inc. reported third-quarter fiscal 2026 results with both revenue and earnings exceeding Zacks Consensus Estimates and showing year-over-year growth [1][11]. Financial Performance - Adjusted earnings were 35 cents per share, surpassing the Zacks Consensus Estimate of 23 cents, and increased by 3% from 34 cents in the same quarter last year [4]. - Net revenues reached $791.4 million, a 7% increase year over year, exceeding the consensus estimate of $774 million. On a constant-currency basis, revenues rose by 5% [4]. - Adjusted earnings from operations were $37 million, down 13.5% from $42.8 million in the prior year, with an adjusted operating margin of 4.7%, down from 5.8% [5]. Segment Performance - Europe segment revenues increased by 10% on a reported basis and 6% at constant currency, with retail comparable sales rising by 7% [6]. - Americas Retail segment revenues decreased by 2% in U.S. dollars, with retail comparable sales declining by 3% [7]. - Americas Wholesale revenues surged by 28% on a reported basis and 26% at constant currency, although the operating margin decreased to 22.8% [8]. - Asia revenues declined by 8% on a reported basis and 6% at constant currency, with retail comparable sales falling by 5% [9]. Financial Health - The company had cash and cash equivalents of $154.2 million and long-term debt of approximately $299.5 million [12]. - Free cash flow for the nine months ended Nov. 1, 2025, was negative $103.3 million [12]. - A quarterly dividend of 22.5 cents per share was declared, payable on Dec. 26, 2025 [12].

Core Insights - Guess (GES) reported revenue of $791.43 million for the quarter ended October 2025, marking a year-over-year increase of 7.2% and an EPS of $0.35, up from $0.34 a year ago, exceeding Zacks Consensus Estimate of $774 million by 2.25% and delivering an EPS surprise of 52.17% compared to the consensus estimate of $0.23 [1] Revenue Breakdown - Net revenue from Americas Retail was $170.04 million, slightly below the average estimate of $173.61 million, reflecting a year-over-year decline of 1.6% [4] - Net revenue from Americas Wholesale reached $126.15 million, surpassing the estimated $103.39 million, showing a significant year-over-year increase of 27.6% [4] - Net revenue from Asia was $60.07 million, below the average estimate of $63.72 million, representing a year-over-year decrease of 8.3% [4] - Net revenue from Europe amounted to $404.06 million, exceeding the estimated $391.4 million, with a year-over-year growth of 9.7% [4] - Net revenue from Licensing was $31.11 million, falling short of the estimated $35 million, indicating a year-over-year decline of 5.8% [4] Stock Performance - Shares of Guess have returned -0.4% over the past month, compared to a -1.2% change in the Zacks S&P 500 composite, with the stock currently holding a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Guess (GES) reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and showing a slight increase from $0.34 per share a year ago, resulting in an earnings surprise of +52.17% [1] - The company achieved revenues of $791.43 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.25% and increasing from $738.52 million year-over-year [2] - Guess shares have increased approximately 20.3% year-to-date, outperforming the S&P 500's gain of 14% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.53 on revenues of $1.01 billion, and for the current fiscal year, it is $1.60 on revenues of $3.2 billion [7] - The estimate revisions trend for Guess was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Textile - Apparel industry, to which Guess belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Duluth Holdings (DLTH), is expected to report a quarterly loss of $0.56 per share, reflecting a year-over-year decline of -36.6% [9]

Financial Performance - Total net revenue for Q3 FY2026 increased 7% to $791 million from $738.5 million in the same prior-year quarter, with a 5% increase in constant currency[8]. - GAAP net earnings for Q3 FY2026 were $25.6 million, compared to a GAAP net loss of $23.4 million for the same prior-year quarter[5]. - Adjusted net earnings for Q3 FY2026 were $19.0 million, an 8% increase from $17.7 million for the same prior-year quarter, with adjusted diluted EPS increasing 3% to $0.35[7]. - For the nine months ended November 1, 2025, total net revenue increased 7% to $2.21 billion from $2.06 billion in the same prior-year period[16]. - Net revenue for the nine months ended November 1, 2025, was $2.21 billion, up 7.2% from $2.06 billion in the prior year[38]. - Total net revenue for the three months ended November 1, 2025, was $791,427, a 7% increase from $738,518 in the same period last year[47]. Margins and Expenses - GAAP operating margin for Q3 FY2026 decreased to 2.9%, down from 5.7% in the same prior-year quarter, primarily due to higher expenses[9]. - Adjusted operating margin for the nine months ended November 1, 2025 decreased to 1.8%, down from 3.5% in the same prior-year period[20]. - Selling, general and administrative expenses increased to $904.15 million, representing 40.8% of net revenue for the nine months ended November 1, 2025[38]. - Total selling, general and administrative expenses for the three months ended November 1, 2025, were $309,026, an increase of 10.6% from $279,389 in the same period last year[42]. - Corporate overhead increased by 39% to $(50,946) for the three months ended November 1, 2025[47]. Acquisitions and Transactions - The proposed take-private transaction with Authentic Brands Group involves Authentic acquiring 51% of the company's intellectual property, with shareholders receiving $16.75 per share in cash[2]. - The proposed transaction is expected to close in Q4 FY2026, pending regulatory approvals[3]. - The Company completed the acquisition of rag & bone on April 2, 2024, acquiring all operating assets and assuming related liabilities, with a joint venture for intellectual property[24]. - The company incurred $5,607 in proposed transaction costs for the three months ended Nov 1, 2025, compared to no costs in the same period last year[42]. - The company has incurred transaction costs related to the acquisition of rag & bone, which are excluded from adjusted results[60]. Cash Flow and Assets - Free cash flows are calculated as cash flows from operating activities minus purchases of property and equipment, providing insight into cash generation for discretionary items[30]. - Cash and cash equivalents at the end of the period were $155,056, compared to $142,322 at the end of the previous year[53]. - The total assets of the company as of November 1, 2025, amounted to $3,006,496, up from $2,794,661 a year earlier[51]. - Free cash flow for the nine months ended November 1, 2025, was $(103,308), an improvement from $(130,391) in the previous year[55]. Store Operations - As of November 1, 2025, the Company operated 1,058 retail stores directly and an additional 507 stores through partners and distributors across approximately 100 countries[31]. - As of November 1, 2025, the total number of stores operated by the company is 1,565, with 1,058 directly operated and 507 partner-operated stores[57]. - The Americas region has a total of 430 stores, with 414 directly operated and 16 partner-operated[57]. - In Europe and the Middle East, there are 781 total stores, with 587 directly operated and 194 partner-operated[57]. - The Asia and Pacific region has 354 total stores, with 57 directly operated and 297 partner-operated[57]. - The company is undergoing restructuring, including planned exits of certain retail stores in North America and Greater China[60]. Risks and Forward-Looking Statements - Forward-looking statements regarding the Proposed Transaction highlight potential risks, including regulatory approvals and business relationship impacts[32][33]. - The Company is subject to various risks, including changes in tax policy, economic conditions, and cybersecurity threats, which may affect future performance[34]. Earnings and Tax Rates - The effective income tax rate for the three months ended November 1, 2025, was 23.4%, compared to an effective tax rate of (128.9%) in the same period last year[38]. - Adjusted effective income tax rate for the nine months ended November 1, 2025, was 49.3%, compared to 35.7% in the prior year[42]. Other Financial Metrics - Other income for Q3 FY2026 was $21.2 million, compared to other expense of $45.8 million for the same prior-year quarter, primarily due to a net unrealized gain of $17.9 million[13]. - Product sales for the three months ended November 1, 2025, reached $760.32 million, a 7.8% increase from $705.51 million in the same period last year[38]. - Gross profit margin decreased to 41.7% for the nine months ended November 1, 2025, compared to 43.1% in the same period last year[38]. - Earnings from operations decreased by 45% to $23,183 compared to $42,276 in the prior year[47]. - The Americas Wholesale segment experienced a significant growth of 28% in net revenue, reaching $126,147[47]. - The Americas Retail segment reported a 2% decrease in net revenue, totaling $170,037[47].

Core Insights - Guess?, Inc. (GES) is expected to report a revenue increase of 4.8% year-over-year, with the Zacks Consensus Estimate for revenues at $774 million for the third quarter of fiscal 2026 [1] - The earnings consensus remains unchanged at 23 cents per share, indicating a decline of 32.4% from the previous year [2] - GES has a trailing four-quarter earnings surprise average of 26.7% [2] Revenue Drivers - The anticipated revenue growth for GES is attributed to an expanding brand portfolio, strong international performance, and the integration of recent acquisitions [3] - Strategic initiatives, including the elevation of the core Guess? brand and diversification through rag & bone, are expected to support continued sales growth [3] Profitability Challenges - Despite expected revenue growth, GES may face year-over-year pressure on its bottom line due to margin headwinds, including higher store and advertising expenses, increased markdowns, and weaker profitability in the Americas Retail and Wholesale segments [4] - Cost inflation and integration-related expenses from rag & bone could further constrain profitability [4] Regional Performance - Europe and Asia are strong profit contributors for GES, but softness in the Americas and declining licensing revenues may offset some of that strength, potentially leading to a year-over-year decline in the bottom line [5] Earnings Prediction - Current analysis does not predict an earnings beat for GES, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [6]

Core Insights - Guess (GES) is expected to report quarterly earnings of $0.23 per share, a decline of 32.4% year-over-year, with revenues projected at $774 million, reflecting a 4.8% increase compared to the previous year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1][2] Revenue Estimates - Analysts forecast 'Net revenue- Americas Retail' to reach $173.61 million, indicating a year-over-year change of +0.5% [3] - The consensus estimate for 'Net revenue- Americas Wholesale' is $103.39 million, suggesting a year-over-year change of +4.6% [4] - 'Net revenue- Asia' is expected to be $63.72 million, reflecting a year-over-year decline of -2.7% [4] - 'Net revenue- Europe' is projected at $391.40 million, indicating a year-over-year increase of +6.2% [4] - The average prediction for 'Net revenue- Licensing' stands at $35.00 million, showing a change of +6% from the year-ago quarter [5] Stock Performance - Guess shares have experienced a +0.5% change in the past month, contrasting with the Zacks S&P 500 composite's -0.3% movement [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [5]